Oaknorth Backs Acquisition Of Loungers, Which Plans To Roll Out 30 New Sites A Year

OakNorth bank has participated in a club loan to support Lion Capital and Fortress Investment Group’s Public to Private acquisition of Loungers, one of the UK’s fastest-growing all-day café-bar operators.

Founded in 2002 and headquartered in Bristol, Loungers operates three distinct brands – Lounge (252 sites), Cosy Club (36 sites), and Brightside (4 sites) – and employs over 9,000 staff. Known for its unique all-day, community-focused proposition, the business has demonstrated consistent like-for-like revenue growth, resilient cash generation, and an industry-leading site success rate. Unlike a lot of chains, each site is branded and positioned individually within its respective community, meaning that many of its local customers aren’t aware of the scale of the business.

Under Fortress and Lion’s ownership, Loungers plans to continue its proven site rollout strategy, opening over 30 new sites a year to capture further market share in underserved UK locations. The strong cash generation and low leverage profile of the business post-acquisition are expected to underpin continued investment in expansion.

Alex Reilley, executive chairman and co-founder of Loungers, commented:
“We’re hugely excited about what the future holds for Loungers. Having the backing of both Fortress and Lion Capital provides us with the firepower and strategic support to continue our ambitious expansion plans while staying true to the culture and values that have made Loungers so special. Throughout this transaction, OakNorth has been an outstanding banking partner – responsive, commercial, and supportive at every step. They are long-term supporters of the hospitality sector and have a deep market understanding of the challenges and opportunities facing businesses like ours.”

Stuart Blair, Debt Finance Director at OakNorth, continued:
“Loungers is a best-in-class operator with a differentiated and highly scalable model. The business has shown impressive resilience through multiple macroeconomic cycles and continues to deliver outstanding site-level economics. The management team led by Nick and Alex is world-class which is why they’ve been able to deliver such strong results for decades. It’s been a pleasure to work alongside Fortress and Lion Capital – two highly experienced sponsors with a deep understanding of the hospitality sector – to support the next stage of Loungers’ growth journey.”